1. China to Rally on Reopen, Other Stocks Seen Mixed: Markets Wrap

    (Bloomberg) — Asian shares traded mixed at the start after Wall Street slumped on Friday amid signs US inflation is stickier than expected. Chinese stocks are poised for a strong open after a week-long holiday. Japan’s TOPIX Index traded slightly higher, while the Nikkei 225 fluctuated with shares in gaming company Nintendo Co. falling as much as 8.5%.

  2. US Producer Prices Increased by More Than Forecast in January

    (Bloomberg) — Prices paid to US producers rose in January by more than forecast, fuelled by a sizable jump in costs of services and highlighting the sticky nature of inflation. The producer price index for final demand increased 0.3% from December, Labor Department data showed Friday. The gauge rose 0.9% from a year earlier, also exceeding forecasts.

  3. BlackRock Sees Japan Stocks as Big Winner from BOJ Policy Shift
    (Bloomberg) — Japan’s much-anticipated exit from its ultra-easy monetary policy is likely to have the unusual effect of making the equity market the biggest beneficiary from interest-rate hikes. That’s the prediction of Yue Bamba, head of Japan active investments at the world’s biggest money manager, BlackRock Inc., who flagged that big underweight positions point to further fund flows into the market.

  4. Ukraine’s Allies Are Gaming Out a World in Which the US Retreats

    (Bloomberg) — NATO members now talk privately about a Russian attack on one of them as a danger that demands an urgent response, as they grow to doubt that the US will maintain its traditional role of protecting Europe as part of the alliance. On Friday President Joe Biden did his best to rule out the word ‘panic,’ but in tiptoeing around it did more than anyone else to describe Europe’s mood.

  5. Cracks Start to Emerge in Global Central Bank Synchronicity

    (Bloomberg) — The four-year synchronization among developed-world central banks might be about to weaken as domestic drivers take over from global trends in determining price outlooks. A pioneer of inflation targeting in the early 1990s, New Zealand has a knack of setting trends in monetary policy. And it may do so again by snapping the policy uniformity, with traders pricing the possibility of an interest-rate hike that ANZ Bank economists say could come as soon as Feb. 28.

  6. Treasury Market Awaits FOMC Meeting Minutes, Long-End Bond Sales

    (Bloomberg) — A light data calendar beckons for the bond market this holiday-shortened week and the highlight for traders is the release of the Federal Reserve’s January 30/31 meeting minutes on Wednesday. Six Fed officials speak Thursday with the market likely to pay attention to Fed governor Christopher Waller.

  7. Gold Steady as Traders Await Next Set of Clues on Fed Outlook

    (Bloomberg) — Gold held a two-day gain as traders awaited further clues on the outlook for US interest rates, with the Federal Reserve set to release minutes of its recent meeting midweek. Bullion for immediate delivery was little changed above $2,018 an ounce, after advancing more than 1% over the prior two sessions to pare a second weekly decline.

  8. Britain’s Lettings Supply Jumps 34%, Easing Pace of Rent Hikes

    (Bloomberg) — Britain saw the highest annual jump in rental homes on the market in over seven years last month, led by a long-awaited boost in supply in London. There were 34% more rental homes available in the UK in January compared with the same month a year earlier, helped by supply in London rising 61% in the same period, according to Hamptons International data.

  9. China Holds Key Rate Steady as Yuan Limits Room for PBOC Moves

    (Bloomberg) — China refrained from cutting a key policy interest rate as its central bank sought to shield the yuan from volatility, underscoring the challenges policymakers face as they try to manage economic risks and pressures from deflation. The People’s Bank of China held the interest rate on its one-year policy loans at 2.5% on Sunday while injecting a small amount of cash into the financial system, both moves in line with expectations among most economists surveyed by Bloomberg.

  10. Microsoft Favoured by Vanguard, TCI Fund as Margins Trend Higher

    (Bloomberg) — A relentless rally in Microsoft Inc., which overtook Apple Inc. as the world’s most valuable company in January, has backing from a range of investors from hedge funds to pension funds. The software behemoth has extended last year’s 57% jump to push its market valuation above $3 trillion.

  11. Apple Inc’s shares fell 0.84% after the company is said to face a European Union fine close to €500 million after investigations found that it silenced music-streaming rivals, including Spotify, on its platforms.

    The investigation was sparked by a complaint that Spotify filed in 2019, with the fine expected to be announced in early March. Applied Materials Inc’s shares were up 6.35% after the largest US maker of chipmaking machinery issued a strong forecast for the current quarter. The company reported 1Q24 adjusted earnings per share (EPS) of $2.13 as compared to $2.03 in 1Q23, beating estimates of $1.91.

    12. Applied Materials Inc’s shares were up 6.35% after the largest US maker of chipmaking machinery issued a strong forecast for the current quarter.

    The company reported 1Q24 adjusted earnings per share (EPS) of $2.13 as compared to $2.03 in 1Q23, beating estimates of $1.91. The management also expects to see an adjusted EPS between $1.79 and $2.15 in 2Q24. Chief Executive Officer Gary Dickerson highlights that the overall market dynamics are improving and demand for chips is growing.

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